Trent’s Q2 profit rises over 11% but misses estimates
Trent Ltd on Friday reported weak growth for the September quarter, missing both revenue and profit forecasts as demand softened after a strong start to the financial year.
Tata group company’s revenue from operations increased by 15.9% ₹4,817.68 crore is inadequate Bloomberganalyst forecast ₹4,998.30 crore. Net profit increased by 11.34% ₹373.42 crore, behind estimates ₹446.3 crore.
The Mumbai-based retailer added 13 Westside and 40 Zudio stores in the quarter, underlining that its store-focused growth strategy continues despite unbalanced discretionary consumption. As of September, Trent’s retail network consisted of 261 Westside and 806 Zudio stores (including 3 in the United Arab Emirates), with over 1,100 outlets in different formats.
“Trent continues to outperform its peers. However, the growth trend appears moderate due to a high base. It is well positioned to navigate the competitive business environment in the medium to long term,” Antique Stock Broking Ltd. said in an Oct. 7 analyst note.
The brokerage also emphasized that Westside will continue to be a key area of focus for the company. “The majority of Westside stores became operational in September, which will contribute to revenue in the coming quarters. Our understanding is that Westside will be a key focus area for Trent as the company added 13 stores in the first half versus 14-18 stores annually over the last three years,” the note said.
This quarter also saw the departure of one of its independent directors, Susanne, following the completion of her five-year term.
